Ganesha Ecosphere Ltd (GANECOS) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Your passcode has been confirmed. Please wait while you are joined to the conference. The conference is now being recorded.
Moderator: Ladies and gentlemen, good day, and welcome to Ganesha Ecosphere Limited Q2 FY27 Earnings Conference Call hosted by Antique Stock Broking. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Manish Mahawar from Antique Stock Broking. Thank you, and over to you, sir.
Manish Mahawar (Antique Stock Broking): Thank you, moderator. I am pleased to host today's earning call of Ganesha Ecosphere. From the management, we have Mr. Gopal Agarwal, CFO; Mr. Prashant Khandelwal, Senior Vice President; and Mr. Yash Sharma, Director, Ganesha Ecopet on the call. Without any delay, I would like to invite Mr. Yash Sharma to start with opening comment comment. Thank you, and over to you, Yash.
Yash Sharma (Ganesha Ecopet): Yes, and a very good afternoon to everyone, and a very warm welcome to all the participants for joining. So, thank you for joining and for your continued interest in Ganesha Ecosphere. I hope all of you have had the opportunity to go through our results, as well as the investor presentation. We are pleased to report that another quarter of healthy progress and our performance remaining broadly in line with the direction and the growth strategy that we have outlined at the beginning of the year. Demand remained encouraging across both our legacy as well as subsidiary operations.
Yash Sharma (Ganesha Ecopet): resulting better volumes and improved revenue performance during this quarter. On a sequential basis, the consolidated revenue has grown by 21.1%, while the stand-alone revenue has increased by 20.7%. On a year-on-year basis, the consolidated revenue has increased by 41.2, while the stand-alone revenue has increased by 22%. Overall, in the first half of FY '27, the turnover has increased by 33.7% on the consol basis. Consolidated sales volume increased to 49,382 metric tons from 40,000 113 metric tons during the last quarter. Stand-alone sales volume has also grown significantly to 31,800 tons from 25, 321 metric tons achieved during the quarter 1. The operating environment, however, has remained quite volatile. During the quarter, both the PET bottle scrap prices as well as the finished product prices have witnessed sharp fluctuations on both the sides. And which was primarily driven by movements in crude oil, sentiments in polymer markets owing to the ongoing geopolitical developments in the West Asia, resulting in a quite significant volatility across the value chain. Despite these challenges, we have been able to maintain the business momentum and healthy margins. Coming to our performance, the stand-alone business continued to operate strongly with plant utilization of about 99% during this quarter. The Warangal facility operated at around 67% utilization during this quarter. Healthy demand and operational efficiency supported the performance despite the volatile raw material environment. From a financial perspective, we have achieved a stand-alone EBITDA of 24.51 crores and consolidated EBITDA of 60.6 crores during Q2 FY '27, which is an increase of 200% and percent over the corresponding last quarter. During Q1 FY '27, stand-alone EBITDA per ton was rupees 9,396 as compared to 7704 earned during the Q2. And consol EBITDA per ton was 14,902 as against 12,281 earned during the current quarter. It was mainly due to the inventory gains during Q1 and loss of RPSF production at Warangal unit faced because of the fire incident in the RPSF. On on the half-yearly basis, we achieved consolidated EBITDA of 120.42 crores as against the 58.63 crores during the last corresponding FY. We generated operating cash flows of 56.91 crores during H1 FY '27, reflecting the strength of our business model and the continued focus on profitable growth and cash generation. Our fourth rPET granule production line at Warangal unit got the FSSAI approvals for food-grade applications and has thus become eligible to cater to the growing food-grade packaging market. In in August '26, we got a set back due to the fire incident at the RPSF division of our Warangal facility. This resulted into halting of the operations, causing production and profit profitability losses, while the fixed costs continued to be incurred. Quantum of loss is still under assessment, though it is adequately covered under insurances. Restoration activities are progressing as planned, and we expect the affected operations to be reinstated by Q4 FY '27. Looking ahead, our growth and expansion plans remain firmly on track. The fifth rPET granules production line is currently under installation and is expected to be commissioned during Q4 of FY '27. This will further enhance our capacity and strengthen our ability to serve the increasing demand for high-quality food-grade rPET products. We are also shifting our Kanpur RPSF production line to our Temra unit to improve the operational efficiencies, optimize costs, and create a more integrated manufacturing setup. Overall, we are very encouraged by the performance delivered during the first half of FY '27. Demand fundamentals remain quite healthy. Our expansion projects are progressing as scheduled, and we believe the momentum witnessed during the first half of the year should continue through the remainder of FY '27 as well. Thank you once again to everyone for joining us today. We will be happy to take any questions now. Thank you.
Moderator: Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. First question is from the line of Dheeraj Ram from 361 Capital. Please go ahead.
Yash Sharma (Ganesha Ecopet): demand of rPET remains quite strong and healthy, due to the elevated polymer prices overall currently. Also, now the government mandate of using 40% recycled content is definitely in place, and all the players in the industry are looking to follow the mandates. Secondly, yes, definitely there have been new capacity which has which have come online during the Q2, for example, IDVB IDVB has got the approvals. There is one small player in the northeast which has got approval, and you know, our new line has got the approval and similarly, one more player's new line has got the approval in the Q2 for from FSSAI.
Dheeraj Ram (361 Capital): Understood. And second would be what does this FSSAI approval mean? Currently, we were selling it for non-food grade. What was the utilization based, and what could be the potential implication of this FSSAI approval on your new line, and what could be numbers turning out to be?
Yash Sharma (Ganesha Ecopet): Yes. So, basically, when when once you get the FSSAI approval, then you are then you are able to supply the output of the of the line into food-contact applications. Till now, we were utilizing that line mostly for our non-food grade customers and also for exports, since we already had the US FDA and EFSA approvals for the line. So we were mainly focusing on that. Now, go from now onwards, obviously, since we we will be able to also ramp up the utilization, which we were running for the the line for at about oddly about 60% before the approval came through, and after that, we've been able to increase the ramp-up.
Dheeraj Ram (361 Capital): Understood. And just last question is, what could be the loss in volume due to this fire accident at Warangal in the r-PSF segment?
Gopal Agarwal (Ganesha Ecosphere Ltd): It is It is roughly about 205 2,500 to 3,000 tons, quarterly basis.
Dheeraj Ram (361 Capital): Quarterly basis, understood. Lastly, is could you let me know the raw material price trend and this crude price, what could be the raw material price as on date?
154 more turns of this transcript: log in to Stocksigma to read the full call.